Multiple media outlets reported earlier this month that Yahoo was on the verge of major layoffs, perhaps as high as 20 percent (but more likely 10 percent) of the struggling technology company. On Tuesday, TechCrunch reported that tipsters were contacting them to say the layoffs had begun. The company's Yahoo Groups and Flickr divisions were named specifically.

Yahoo's official statement doesn't say much: "Yahoo is always evaluating expenses to align with the company's financial goals. Beyond that, we don't comment on rumors or speculation."

If true, the layoffs are yet another blow to morale at Yahoo as it continues to attempt a turnaround under the leadership of CEO Carol Bartz. There has already been one round of layoffs in Bartz's tenure, and prior to her arrival early last year there had been multiple layoffs since early 2008.

In a talk last month, Bartz described the Yahoo turnaround process as "traveling up (Highway) 101 at 100 miles an hour, changing the tires."

To add insult to injury, many of the valley's other giants are soaring: Google, the company that dethroned Yahoo as king of search a decade ago, is said to be facing tough competition over engineering talent. But things are still sunny enough over there that the company was able to address this "crisis" with a 10 percent raise for all employees.